European banking consortium to fund modernization of Brazil’s submarine fleet

27 November 2006

Brasilia, Brazil, 27 Nov – Portugal’s Espirito Santo group is part of a banking consortium led by ABN AMRO of the Netherlands that will finance a project to enlarge and modernize the Brazilian Navy’s submarine fleet, an official has said.

The project, worth over euros 1 billion, involves the construction of an IKL 214 submarine by HDW of Germany, as well as the upgrading of five existing Tupi-class, model U-209, vessels, also built by HDW, and the creation of a repair program for 16 submarines in other Latin American states.

“Politically, everything is already agreed and there are only bureaucratic matters to attend to. The Foreign Finance Committee (Cofiex) has approved the project, which was referred to the Finance Ministry and will now be sent to the Senate,” a senior Brasilia military sources told Lusa.

Cofiex is the Brazilian state body that coordinates the processing of requests for foreign loans.

Brazil’s presidency will send a request to the Senate to approve the loans, after which the Finance Ministry will authorize the loans to allow signing of contracts by the parties involved.

Construction of the new submarine will be carried out by ThyssenKrupp of Germany by its subsidiary, ThyssenKrupp Marine Systems, with an accord for technology transfer to the Brazilian government. (macauhub)